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Monday 2 April 2018
Military Employee Charged with Child Pornography OffensesRead the Press Release
A military employee who resided in Maryland before moving to Japan in November 2017 has been arrested and indicted for the production, transportation, and possession of child pornography.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Stephen M. Schenning of the District of Maryland and Special Agent in Charge Gordon B. Johnson of the FBI’s Baltimore Field Office made the announcement.
Spencer E. Steckman, 34, who lived in Silver Spring, Maryland at the time the alleged conduct began, was charged in an indictment on March 26, with one count of production of child pornography, one count of transportation of child pornography, and one count of possession of child pornography. Steckman had his initial court appearance earlier today and was remanded into the custody of the U.S. Marshals Service.
According to the indictment, between Aug. 17, 2017, and Sept. 22, 2017, while in Maryland, Steckman enticed a minor to engage in sexually explicit conduct for the purpose of producing child pornography. In mid-November 2017, Steckman moved to Japan to work with Commander Navy Region Japan. In Japan, Steckman transported and possessed child pornography.
Steckman was detained by the Naval Criminal Investigative Service (NCIS) in Japan on March 27, and transported back to Maryland by the U.S. Marshals Service on April 1, to appear before the U.S. District Court for the District of Maryland.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Baltimore Field Division and the Maricopa County, Arizona, Sheriff’s Office are investigating the case, with substantial assistance from NCIS. Trial Attorney Jessica Urban of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Joseph Baldwin of the District of Maryland are prosecuting the case.
This investigation was a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Military Employee Charged with Child Pornography OffensesRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – A federal grand jury has indicted Spencer E. Steckman, 34, of Silver Spring, Maryland for the production, transportation, and possession of child pornography. The indictment was returned on March 26, 2018, and unsealed upon the arrest of the Steckman.
The indictment was announced by Acting United States Attorney Stephen M. Schenning of the District of Maryland; Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, and Special Agent in Charge Gordon B. Johnson of the FBI - Baltimore Field Office.
Steckman was charged with one count of production of child pornography, one count of transportation of child pornography, and one count of possession of child pornography. Steckman had his initial court appearance earlier today and was remanded into the custody of the U.S. Marshals Service.
According to the indictment, between August 17, 2017, and September 22, 2017, Steckman, while in Maryland, enticed a minor to engage in sexually explicit conduct for the purpose of producing child pornography. In mid-November 2017, Steckman moved to Japan to work with Commander Navy Region Japan. In Japan, Steckman transported and possessed child pornography.
Steckman was detained by the Naval Criminal Investigative Service (NCIS) in Japan on March 27, 2018, and transported back to Maryland by the United States Marshals Service on April 1, 2018, to appear before the U.S. District Court for the District of Maryland.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning commended the FBI, NCIS and the Maricopa County, Arizona, Sheriff’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Joseph Baldwin and Trial Attorney Jessica Urban of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), who are prosecuting the case.
This investigation was a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Maryland man admits to drug distribution chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Xavier Clyde Mann, of Finksburg, Maryland, has admitted to selling cocaine, United States Attorney Bill Powell announced.
Mann, age 30, pled guilty to one count of “Distribution of Cocaine Base.” Mann admitted to selling cocaine base in Mineral County in June 2017.
Mann faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara K. Omps-Botteicher is prosecuting the case on behalf of the government. The case was investigated by the Potomac Highlands Drug and Violent Crimes Task Force.
U.S. Magistrate Judge Robert W. Trumble presided.
Marshall County man admits to drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Carl N. Hooker, of Moundsville, West Virginia, has admitted to a drug charge, United States Attorney Bill Powell announced.
Hooker, age 56, pled guilty to one count of “Conspiracy to Distribute and to Possess with the Intent to Distribute Oxycodone.” Hooker admitted to conspiring with others to distribute oxycodone, from 2009 to November 2017 in Marshall County.
Hooker faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr. is prosecuting the case on behalf of the government. The Marshall County Drug and Violent Crime Task Force, a HIDTA-funded initiative, is investigating.
U.S. Magistrate Judge James E. Seibert presided.Man Charged with Failing to Report to PrisonRead the Press Release
HOUSTON – A convicted tax offender has been charged again, this time for failing to serve his prison sentence, announced U.S. Attorney Ryan K. Patrick.
Kermit Woods is set to appear before U.S. Magistrate Judge Frances Stacy at 10:00 a.m. today.
Woods had owned and operated an income tax preparation business in Houston known as L&L Finance. He pleaded guilty in March 2012 to willfully preparing a false U.S. Individual Income Tax Return. He was sentenced in January 2013 to 24 months in prison and ordered to pay the IRS restitution of $362,340.
At the time of his sentence, the court had permitted him to remain on bond and voluntarily surrender to the U.S. Bureau of Prisons on Feb. 26, 2013. He never reported as ordered, according to the charges. He remained a fugitive until his recent arrest in Arizona.
If convicted of failing to appear, Woods faces another maximum of 24 months in prison in addition to the already-imposed 24 months for the tax offense.
IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Man Admits to Distributing Child PornographyRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Marlin Russell Derk, age 46, of Sumter, South Carolina, has entered a guilty plea in federal court in Columbia, to distributing child pornography images that had traveled in interstate/foreign commerce by computer, a violation of 18 U.S.C. § 2252A. United States District Judge Mary Geiger Lewis, accepted the guilty plea and will impose sentence after she has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that ICE - Homeland Security Investigations agents in Washington D.C. and Tampa were monitoring a chatroom hosting website for individuals posting child pornography when, on June 11, 2015, Derk posted child pornography. Derk’s cell phone and computers were subsequently seized and it was determined that he had been uploading and downloading child pornography. Ms. Drake stated the maximum penalty for distributing child pornography is imprisonment for not less than 5 nor more than 20 years plus Supervised Release for from 5 years to life and/or a fine of $250,000.
The case was investigated by agents of the Federal Bureau of Investigation and ICE - Homeland Security Investigations. Assistant United States Attorney William E Day, II, of the Columbia office is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
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MS-13 Member Pleads Guilty to RICO Conspiracy Involving MurderRead the Press Release
BOSTON – An MS-13 member pleaded guilty on Friday, March 30, 2018, in federal court in Boston to racketeering conspiracy involving the murder of a 15-year-old boy in East Boston.
Carlos Melara, a/k/a “Chuchito,” a/k/a “Criminal,” 21, a Salvadoran national, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for July 30, 2018.
After a multi-year investigation, Melara was one of 61 people named in a fifth superseding indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13. During the investigation, Melara was identified as a member of MS-13’s Everett Locos Salvatrucha (ELS) clique.
On Sept. 7, 2015, Melara, Henry Josue Parada Martinez, a/k/a “Street Danger,” and another MS-13 member participated in the murder of a teenage boy on Constitution Beach in East Boston. The defendants targeted the victim in a “catfishing” scheme in which they used a fake Facebook account to trick the victim into thinking he was talking to a girl. In reality, the Facebook account was being controlled by MS-13 members to lure in suspected gang rivals so that the gang could murder them.
On the day of the murder, Melara picked up the victim on a scooter pretending to be a friend of the girl that the victim was planning to meet for a date. Melara drove the victim to Constitution Beach, where the other MS-13 members were waiting to kill him. Melara and the other MS-13 members took turns attacking and stabbing the victim to death. Melara was promoted to “homeboy” or a full member of MS-13, as a reward for his participation in the murder.
At the hearing, the Court accepted the defendant’s guilty plea, but deferred acceptance of the plea agreement until the July 30, 2018, sentencing hearing. Under the terms of the proposed plea agreement, Melara will be sentenced to between 30 and 40 years in prison. He will also be subject to deportation upon the completion of his sentence.
On Nov. 29, 2017, Parada Martinez pleaded guilty to RICO conspiracy; he is awaiting sentencing. Melara is the 40th defendant to plead guilty or to be found guilty after trial.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; and Somerville Police Chief David Fallon made the announcement.
The details contained in the charging documents are allegations. All remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lexington Man Sentenced to 37 Months Imprisonment for Possession of a Firearm by a Convicted FelonRead the Press Release
LEXINGTON, Ky., — Delvagio Christopher Lax,33, of Lexington, KY, was sentenced today to 37 months years in prison by United States Senior District Court Judge Joseph M. Hood for Possession of a Firearm by a Convicted Felon. Judge Hood also ordered Lax to pay a fine of $5,000.
Lax previously admitted that on October 6, 2017, while living on Mt. McKinley Way in Lexington, he possessed a .45 caliber Taurus pistol while in a conflict with neighbors. Lax admitted that prior to the incident offense he had been convicted of the felony offenses of Possession of Cocaine on two occasion and Facilitation to Commit Manslaughter First Degree in 2012 in Fayette County. Lax pleaded guilty to the charges in January of this year.
Under federal law, Lax must serve 85 percent of his prison sentence, and, upon release, will be under the supervision of the United States Probation Office for 3 years.
Robert M. Duncan, Jr. United States Attorney for the Eastern District of Kentucky, Amy Hess, Special Agent in Charge, Federal Bureau of Investigation, Richard Sanders, Commissioner of the Kentucky State Police and Chief Lawrence Weathers, Lexington police Department, jointly made the announcement today after the sentencing.
The Federal Bureau of Investigation, Kentucky State Police and The Lexington Police Department as part of a Safe Streets Task Force to reduce violent crimes in the city of Lexington conducted the investigation. Assistant United States Attorney Roger W. West represented the United States.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Laconia Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
CONCORD, N.H. - Peter Dauphin, 45, of Laconia, pleaded guilty in federal court to five counts of distributing “ice” methamphetamine, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on five separate occasions in April and May of 2017, Dauphin sold “ice” methamphetamine to an individual who was cooperating with law enforcement officers. All of transactions took place at Dauphin’s automotive repair shop in Gilford, New Hampshire.
Dauphin is scheduled to be sentenced on July 9, 2018.
“Methamphetamine is a dangerous drug that can be deadly,” said U.S. Attorney Murray. “The U.S. Attorney’s Office will continue to work with our law enforcement partners to investigate and prosecute those who are distributing methamphetamine and other drugs that jeopardize the safety of our community.”
“More New Hampshire residents are dying from drug overdoses than ever before. By taking individuals like Mr. Dauphin, who deal dangerous drugs off the street, we’re trying to keep addiction from spreading,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division. “The FBI will continue to work with our law enforcement partners to identify and disrupt drug traffickers, decrease associated violence, and improve the quality of life for our residents.”
This matter was investigated by the police departments of Gilford and Laconia, in conjunction with the FBI New Hampshire Safe Streets Gang Task Force. The Task Force is comprised of the FBI, the New Hampshire State Police, New Hampshire Probation and Parole, and the police departments of Hudson, Manchester, and Nashua. The case is being prosecuted by Assistant U.S. Attorney Shane B. Kelbley.
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Justice Department Files Lawsuit to Invalidate New California Law Restricting Federal Land SalesRead the Press Release
WASHINGTON - The U.S. Department of Justice today filed a civil action in the U.S. District Court for the Eastern District of California against the State of California, Governor of California Edmund G. “Jerry” Brown Jr., and the California State Lands Commission, seeking a declaration that California Senate Bill 50 (“SB 50”), enacted in October 2017, is unconstitutional and seeking an injunction against implementation of this state law. This California law purports to give a state agency the power to block the sale, donation or exchange of federal lands by the federal government to any other person or entity. SB 50 also seeks to penalize (up to $5,000) any person who knowingly files real estate records pertaining to a federal land transfer unless the California government certifies that the transfer complies with state law.
“The Constitution empowers the federal government—not state legislatures—to decide when and how federal lands are sold,” said Attorney General Jeff Sessions. “California was admitted to the Union upon the express condition that it would never interfere with the disposal of federal land. And yet, once again, the California legislature has enacted an extreme state law attempting to frustrate federal policy. The Justice Department shouldn't have to spend valuable time and resources to file this suit today, but we have a duty to defend the rightful prerogatives of the U.S. military, the Interior Department, and other federal agencies to buy, sell, exchange or donate federal properties in a lawful manner in the national interest. We are confident that we will prevail in this case—because the facts are on our side.”
“Since the founding of the Republic, it has been fundamental to our constitutional system that a state may not discriminate against the United States or those with whom it deals,” said U.S. Attorney McGregor W. Scott for the Eastern District of California. “We will vigorously defend this principle.”
Under a range of federal laws, Congress has empowered federal agencies with the responsibility to determine when, to whom, for what purpose, and under what conditions federal interests in property will be conveyed. Federal conveyances serve a broad range of purposes such as supporting national defense, promoting local economic development, furthering land conservation, or otherwise providing important public benefits.
SB 50 interferes with federal land conveyances in the State of California. For example, SB 50 establishes a state policy to discourage transfers of federal lands in California out of federal ownership. It purports to render void federal land conveyances unless the California State Lands Commission is provided with a right of first refusal to the conveyance or the right to arrange for transfer to another entity. In addition, it purports to prohibit recordation of any deed or other conveyance document relating to a federal conveyance, unless the county recorder is presented with a certificate of compliance from the California State Lands Commission.
The United States’ complaint contends that SB 50 violates the Supremacy Clause of the U.S. Constitution and is therefore invalid. In the first claim for relief, the complaint alleges that SB 50 violates intergovernmental immunity because it discriminates against the United States and its transaction partners and, in the alternative, because it purports to regulate the United States. In the second claim for relief, the complaint alleges that a range of federal laws preempt SB 50, including because SB 50 stands as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress.The Supremacy Clause of the Constitution provides: “This Constitution, and the Laws of the United States which shall be made in Pursuance thereof . . . , shall be the supreme Law of the Land; and the Judges in every State shall be bound thereby; any Thing in the Constitution or Laws of any State to the Contrary notwithstanding.” U.S. Const. art. VI, cl. 2.
The Property Clause of the Constitution provides that “Congress shall have Power to dispose of and make all needful Rules and Regulations respecting the Territory or other Property belonging to the United States.” U.S. Const. art. IV, § 3, cl. 2.
On Sept. 9, 1850, Congress enacted “An Act for the Admission of the State of California into the Union,” ch. 50, 9 Stat. 452. Section 3 of the Act provides in relevant part that “the said State of California is admitted into the Union upon the express condition that the people of said State, through their legislature or otherwise, shall never interfere with the primary disposal of the public lands within its limits, and shall pass no law and do no act whereby the title of the United States to, and right to dispose of, the same shall be impaired or questioned.” 9 Stat. at 452.
The complaint lists examples of conveyances of federal real property purportedly subject to SB 50, including the following:- The Department of the Army’s planned conveyances to a developer in connection with a multi-phase transaction involving exchanges of about 78 acres of real property owned by the United States in the City of Dublin, Alameda County, for construction of facilities at Camp Parks, an Army military installation.
- The Department of the Navy’s closing on a contract with a developer for the purchase of the Admiral’s Cove property in Alameda, California. The General Services Administration serves as the Navy’s agent in connection with this transaction, providing services under an interagency agreement. This property was formerly used as housing for a military installation at the Naval Air Station Alameda. The Navy and a local redevelopment agency expended substantial resources over a period of many years, including in conducting environmental reviews, before the Navy decided to convey the property.
- The Department of Veterans Affairs plans to revitalize its 388-acre West Los Angeles Campus by leasing real property to other entities for the purpose of providing permanent supportive housing and related services for local veterans. The Department of Veterans Affairs also contemplates issuing an easement to the City of Los Angeles in support of the planned Purple Line Metro Project. These actions would help restore the campus to a safe and welcoming community for veterans and help to reduce veteran homelessness in Los Angeles.
The United States is represented in this action by Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division, with lead counsel Deputy Assistant Attorney General Eric Grant, Justin Heminger, Stacy Stoller and Peter McVeigh, and Civil Chief David Shelledy of the U.S. Attorney’s Office for the Eastern District of California.
Justice Department Files Lawsuit to Invalidate New California Law Restricting Federal Land SalesRead the Press Release
The U.S. Department of Justice today filed a civil action in the U.S. District Court for the Eastern District of California against the State of California, Governor of California Edmund G. “Jerry” Brown Jr., and the California State Lands Commission, seeking a declaration that California Senate Bill 50 (“SB 50”), enacted in October 2017, is unconstitutional and seeking an injunction against implementation of this state law. This California law purports to give a state agency the power to block the sale, donation or exchange of federal lands by the federal government to any other person or entity. SB 50 also seeks to penalize (up to $5,000) any person who knowingly files real estate records pertaining to a federal land transfer unless the California government certifies that the transfer complies with state law.
“The Constitution empowers the federal government—not state legislatures—to decide when and how federal lands are sold,” said Attorney General Jeff Sessions. “California was admitted to the Union upon the express condition that it would never interfere with the disposal of federal land. And yet, once again, the California legislature has enacted an extreme state law attempting to frustrate federal policy. The Justice Department shouldn't have to spend valuable time and resources to file this suit today, but we have a duty to defend the rightful prerogatives of the U.S. military, the Interior Department, and other federal agencies to buy, sell, exchange or donate federal properties in a lawful manner in the national interest. We are confident that we will prevail in this case—because the facts are on our side.”
“Since the founding of the Republic, it has been fundamental to our constitutional system that a state may not discriminate against the United States or those with whom it deals,” said U.S. Attorney McGregor W. Scott for the Eastern District of California. “We will vigorously defend this principle.”
Under a range of federal laws, Congress has empowered federal agencies with the responsibility to determine when, to whom, for what purpose, and under what conditions federal interests in property will be conveyed. Federal conveyances serve a broad range of purposes such as supporting national defense, promoting local economic development, furthering land conservation, or otherwise providing important public benefits.
SB 50 interferes with federal land conveyances in the State of California. For example, SB 50 establishes a state policy to discourage transfers of federal lands in California out of federal ownership. It purports to render void federal land conveyances unless the California State Lands Commission is provided with a right of first refusal to the conveyance or the right to arrange for transfer to another entity. In addition, it purports to prohibit recordation of any deed or other conveyance document relating to a federal conveyance, unless the county recorder is presented with a certificate of compliance from the California State Lands Commission.
The United States’ complaint contends that SB 50 violates the Supremacy Clause of the U.S. Constitution and is therefore invalid. In the first claim for relief, the complaint alleges that SB 50 violates intergovernmental immunity because it discriminates against the United States and its transaction partners and, in the alternative, because it purports to regulate the United States. In the second claim for relief, the complaint alleges that a range of federal laws preempt SB 50, including because SB 50 stands as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress.The Supremacy Clause of the Constitution provides: “This Constitution, and the Laws of the United States which shall be made in Pursuance thereof . . . , shall be the supreme Law of the Land; and the Judges in every State shall be bound thereby; any Thing in the Constitution or Laws of any State to the Contrary notwithstanding.” U.S. Const. art. VI, cl. 2.
The Property Clause of the Constitution provides that “Congress shall have Power to dispose of and make all needful Rules and Regulations respecting the Territory or other Property belonging to the United States.” U.S. Const. art. IV, § 3, cl. 2.
On Sept. 9, 1850, Congress enacted “An Act for the Admission of the State of California into the Union,” ch. 50, 9 Stat. 452. Section 3 of the Act provides in relevant part that “the said State of California is admitted into the Union upon the express condition that the people of said State, through their legislature or otherwise, shall never interfere with the primary disposal of the public lands within its limits, and shall pass no law and do no act whereby the title of the United States to, and right to dispose of, the same shall be impaired or questioned.” 9 Stat. at 452.
The complaint lists examples of conveyances of federal real property purportedly subject to SB 50, including the following:- The Department of the Army’s planned conveyances to a developer in connection with a multi-phase transaction involving exchanges of about 78 acres of real property owned by the United States in the City of Dublin, Alameda County, for construction of facilities at Camp Parks, an Army military installation.
- The Department of the Navy’s closing on a contract with a developer for the purchase of the Admiral’s Cove property in Alameda, California. The General Services Administration serves as the Navy’s agent in connection with this transaction, providing services under an interagency agreement. This property was formerly used as housing for a military installation at the Naval Air Station Alameda. The Navy and a local redevelopment agency expended substantial resources over a period of many years, including in conducting environmental reviews, before the Navy decided to convey the property.
- The Department of Veterans Affairs plans to revitalize its 388-acre West Los Angeles Campus by leasing real property to other entities for the purpose of providing permanent supportive housing and related services for local veterans. The Department of Veterans Affairs also contemplates issuing an easement to the City of Los Angeles in support of the planned Purple Line Metro Project. These actions would help restore the campus to a safe and welcoming community for veterans and help to reduce veteran homelessness in Los Angeles.
The United States is represented in this action by Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division, with lead counsel Deputy Assistant Attorney General Eric Grant, Justin Heminger, Stacy Stoller and Peter McVeigh, and Civil Chief David Shelledy of the U.S. Attorney’s Office for the Eastern District of California.
Jamaican National Twice Deported Pleads Guilty to Passport Fraud ChargeRead the Press Release
PROVIDENCE, RI – A Jamaican national twice deported from the United States today pleaded guilty in federal court in Providence, RI, to making false statements on a United States passport application.
Appearing in U.S. District Court in Providence, Dwayne L. Facey, 42, of Hampton, GA, admitted to the court that in March 2015 he used the name of a Massachusetts resident on an application filed at a United States Postal Service facility in Pawtucket seeking a United States passport. Facey pleaded guilty to one count of false statement in an application for a passport with the intent to induce or secure the issuance of a passport.
Facey’s guilty plea is announced by United States Attorney Stephen G. Dambruch and William B. Gannon, Special Agent in Charge of the Boston Field Office of the United States Department of State, Diplomatic Security Service.
Facey is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on June 19, 2018. False statement in an application for a passport with the intent to induce of secure the issuance of a passport is punishable by statutory penalties of up to 10 years in prison followed by up to 3 years supervised release, a fine of up to $250,000.
Information regarding the prosecution of Facey has been forwarded to United States Immigration and Custom Enforcement.
The matter, investigated by the United States Department of State Diplomatic Security Service, is being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
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Illegal Alien Sentenced in Columbia for Illegal ReentryRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Aurelio Herrera-Mata, age 35, of North Augusta, South Carolina was sentenced in federal court in Columbia, South Carolina, for Reentry of Removed Aliens, a violation of 8 U.S.C. § 1326. United States District Judge J. Michelle Childs, of Columbia, sentenced Herrera to 10 months imprisonment with no supervised release because he is expected to be deported upon completion of his sentence.
Evidence presented at the change of plea hearing established that Herrera-Mata is a Mexican citizen who had previously been deported after being convicted for Hit and Run. He was encountered by ICE – Enforcement and Removal Operations agents on December 16, 2017 at the Aiken County Detention Center after being arrested for Trafficking Cocaine and Unlawful Carrying of a Pistol.
Agents of ICE – Enforcement and Removal Operations investigated this case. Assistant United States Attorney William E. Day, II, of the Columbia office is prosecuting the case.
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Illegal Alien Located in Richland County Pleads Guilty to Illegal Re-EntryRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Julio Domingo-Morales, age 42, of Guatemala, entered a guilty plea in federal court in Columbia, to Illegal Re-Entry, a violation of 8 U.S.C. § 1326(a). United States District Judge Mary Geiger Lewis, of Columbia, accepted the guilty plea and will impose sentence after she has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Domingo-Morales was encountered by ICE – Enforcement and Removal Operations agents on January 10, 2018, at the Alvin S. Glenn Detention Center in Columbia after he was arrested for Driving Without a License. An investigation revealed that he is a citizen of Guatemala who had previously been deported two times pursuant to an order of removal. U.S. Attorney Drake stated the maximum penalty for Illegal Re-Entry is imprisonment for 2 years and/or a fine of $250,000.
The case was investigated by agents of the ICE – Enforcement and Removal Operations. Assistant United States Attorney William E. Day, II, of the Columbia office is prosecuting the case.
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Illegal Alien Located in Richland County Pleads Guilty to Illegal Re-EntryRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Julio Cesar Villareal-Garcia, age 42, of Mexico, has entered a guilty plea in federal court in Columbia, to Illegal Re-Entry, a violation of 8 U.S.C. § 1326(a). United States District Judge Mary Geiger Lewis, of Columbia, accepted the guilty plea and will impose sentence after she has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Villareal-Garcia was encountered by ICE – Enforcement and Removal Operations agents on November 27, 2017 at the Alvin S. Glenn Detention Center in Columbia after he was arrested for Driving Under the Influence. An investigation revealed that he is a citizen of Mexico who had previously been deported pursuant to an order of removal. U.S. Attorney Drake stated the maximum penalty for Illegal Re-Entry is imprisonment for 2 years and/or a fine of $250,000.
The case was investigated by agents of the ICE – Enforcement and Removal Operations. Assistant United States Attorney William E. Day, II, of the Columbia office is prosecuting the case.
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Illegal Alien Located in Richland County Pleads Guilty to Illegal Re-EntryRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Ulises Martinez-Garcia , age 28, of Mexico, has entered a guilty plea in federal court in Columbia, to Illegal Re-Entry, a violation of 8 U.S.C. § 1326(a). United States District Judge Mary Geiger Lewis, of Columbia, accepted the guilty plea and will impose sentence after she has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Martinez-Garcia was encountered by ICE – Enforcement and Removal Operations agents on December 27, 2017 at the Alvin S. Glenn Detention Center in Columbia after he was arrested for Driving Under the Influence. An investigation revealed that he is a citizen of Mexico who had been deported four times pursuant to an order of removal. U.S. Attorney Drake stated the maximum penalty for Illegal Re-Entry is imprisonment for 2 years and/or a fine of $250,000.
The case was investigated by agents of the ICE – Enforcement and Removal Operations. Assistant United States Attorney William E. Day, II, of the Columbia office is prosecuting the case.
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Hurricane Man Sentenced for Federal Methamphetamine ChargeRead the Press Release
HUNTINGTON, W.Va. – A Hurricane man caught receiving a shipment of crystal methamphetamine in Huntington was sentenced today to 90 months in federal prison, announced United States Attorney Mike Stuart. Sean Bradsher, 35, previously pled guilty to aiding and abetting the attempted possession with intent to distribute 50 grams or more of methamphetamine in federal court in Huntington. United States Attorney Stuart praised the efforts of the DEA AHIDTA Task Force.
“Any day we can intercept a delivery of illicit drugs and keep them off the streets is a great day. Meth is back and in a terribly horrible way,” said United States Attorney Stuart. “Guys like Bradsher need to be locked up.”
On January 13, 2017, members of the DEA AHIDTA Task Force conducted a controlled delivery of approximately 25 pounds of marijuana and 150 grams of crystal methamphetamine to Bradsher at a residence on 4th Avenue in Huntington. The drugs were intercepted by agents the previous day after they were sent from California to Huntington. After Bradsher took possession of the drugs, agents executed a search warrant at the residence. Agents recovered the marijuana and methamphetamine along with a total of $13,842 in United States currency during the search.
Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by United States District Judge Robert C. Chambers.
This prosecutions was part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Harrison County Man Sentenced to Prison for Opioid DistributionRead the Press Release
COUNCIL BLUFFS, Iowa-- On March 28, 2018, Mark Edward May, age 32, of Missouri Valley, was sentenced by United States District Court Judge Stephanie M. Rose to 14 months in prison for conspiracy to distribute and distribution of oxycodone and hydrocodone announced United States Attorney Marc Krickbaum. May was ordered to serve three years of supervised release to follow his prison term.
May pleaded guilty to one count of conspiracy to distribute a controlled substance and five counts of distribution of a controlled substance on November 16, 2017. May orchestrated the distribution of hydrocodone and oxycodone on multiple occasions to an undercover law enforcement agent from numerous individuals, including co-defendants Chiann May Jones, Jeremiah D. Jones, and Clara Ann Milks. May and his co-defendants made false medical claims to local physicians to obtain the pills.
This investigation was conducted by the Southwest Iowa Narcotics Task Force, Iowa Division of Narcotics Enforcement, Cass County Sheriff’s Office, Harrison County Sheriff’s Office, United States Department of Health and Human Services – Office of the Inspector General, and the United States Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Gulf Coast Men Indicted on Federal Drug Trafficking ChargesRead the Press Release
Gulfport, Miss. – Keith Lavell Brown and Jaycie Mario Thomas have been arrested and charged in a three-count federal indictment with drug trafficking offenses, announced U.S. Attorney Mike Hurst, DEA Assistant Special Agent in Charge Derryle Smith and FBI Special Agent in Charge Christopher Freeze.
Brown and Thomas will appear before U.S. Magistrate Judge John C. Gargiulo today in Gulfport at 2:00 p.m. for their intial appearances and arraignments on the charges.
The indictment charges Brown, 46, of Moss Point, Mississippi, with one count of conspiracy to possess with intent to distibute cocaine and two counts of possession with intent to distribute cocaine. Thomas, 35, of Ocean Springs, Misssissippi, is charged with one count of conspiracy to possess with intent to distribute cocaine.
The indictment alleges that beginning in 2009 until March 20, 2018, the defendants conspired with each other and others to possess with intent to distribute five kilograms or more of cocaine in the Southern Division of the Southern District of Mississippi.
If convicted, the defendants face up to life in prison and fines of up to $10,000,000.
The case is being investigated by the Drug Enforcement Administration and the Federal Bureau of Investigation.
The public is reminded that an indictment is merely an allegation and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Gainesville men convicted of distributing crack cocaineRead the Press Release
GAINESVILLE, Ga. – Twin brothers Kecole Dukes and Kemeca Dukes have been convicted of conspiracy to distribute and distribution of crack cocaine. Both Dukes’ were on parole having recently served a sentence for selling crack cocaine.
“Crack cocaine is still a scourge in our communities,” said U.S. Attorney Byung J. “BJay” Pak. “These defendants are career offenders, and have multiple convictions for distributing crack cocaine in the past. “They are now facing lengthy sentences in federal prison where there is no parole.”
“Removing drugs and the criminals who illegally deal in them has a positive impact in our communities and contributes to stabilizing those areas which are more susceptible to violent criminal activity,” said ATF Atlanta Special Agent in Charge Arthur Peralta. “This sentence should serve as a deterrent to those who destroy their communities by flooding their streets with drugs. Our communities have had enough and it’s though collaborations with our federal, state, local, and community partners that we can have a positive and long lasting effect.”
“We appreciate the efforts of the ATF and Hall County MANS Unit in investigating and apprehending these individuals who continued to distribute crack cocaine into the Gainesville community after having been convicted multiple times on drug offenses,” said Northeastern Judicial Circuit District Attorney Lee Darragh. “We would also like to thank the jurors for their service and verdict.”
According to U.S. Attorney Pak, the charges and other information presented in court: From August 2015 to October 2016, Kemeca Dukes and Kecole Dukes, who are twin brothers, conspired to sell crack cocaine on multiple occasions to informants working for ATF and the Hall County Multi-Agency Narcotics Squad (MANS) Unit. Kemeca Dukes was the primary contact for the informants and sold varying quantities of crack cocaine to them on 10 occasions. Kecole Dukes sold or provided crack cocaine to the informants on three occasions and acted as a lookout for his brother on other occasions when Kemeca Dukes met with the informants to sell them crack cocaine.
During the conspiracy both Kemeca Dukes and Kecole Dukes were on parole with the State of Georgia. Both were convicted in Hall County Superior Court in 2011, for selling crack cocaine and both were released in 2014. Both brothers were back selling crack cocaine less than a year later.
On March 23, 2018, Kemeca Dukes, 40, of Gainesville, Georgia pleaded guilty to one count of distributing crack cocaine. On March 29, 2018, Kecole Dukes, 40, also of Gainesville, Georgia was found guilty by a federal court jury of conspiring to possess with intent to distribute at least 28 grams of crack cocaine and distributing at least 28 grams of crack cocaine and three counts of distributing crack cocaine.
Sentencing for the Dukes’ has not yet been scheduled.
This case was investigated jointly by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Hall County MANS Unit.
Assistant U.S. Attorneys William L. McKinnon, Jr. and Erin E. Sanders and Special Assistant U.S. Attorney and Hall County Assistant District Attorney Juliet Aldridge prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Four indicted in Home Depot ticket switching scamRead the Press Release
ATLANTA - Charles Blackman, a/k/a Ralph Jones, Stephanie Price, a/k/a Rhonda Johnson, Joseph Payne, and Quinton Williams have been arraigned on federal charges of conspiracy to commit wire fraud. Blackman, Price, Payne and Williams were indicted by a federal grand jury on March 20, 2018.
“Blackman and his accomplices allegedly conspired to ‘ticket switch’ and defraud Home Depot of merchandise valued in excess of $300,000,” said U.S. Attorney Byung J. “BJay” Pak. “Honest, hardworking citizens are the ones who ultimately pay the price for thieves who seek to steal from businesses.”
“This case illustrates not just the significance of an aggressive approach to combat this type of fraud, but it also illustrates the importance of partnerships,” said Kenneth Cronin, Special Agent in Charge of the U.S. Secret Service, Atlanta Field Office. “We will continue to work closely with prosecutors to ensure offenders like Blackman and his conspirators are put behind bars.”
According to U.S Attorney Pak, the charges, and other information presented in court: Blackman and his associates allegedly switched or altered the prices of merchandise by changing the Universal Product Code (UPC), so the items could be purchased at a lower price and then returned for the actual, higher retail price. They used false information and fake identifications to further their fraud. Their alleged scheme was to cheat Home Depot out of the hundreds of thousands of dollars to be made on the price difference after returning the merchandise.
Charles Blackman, a/k/a Ralph Jones, 58; Stephanie Price, a/k/a Rhonda Johnson, 51; Joseph Payne, 54; and Quinton Williams, 52, all of Atlanta, Georgia, were arraigned before U.S. Magistrate Judge Justin S. Anand. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges, and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Secret Service. The Woodstock Police Department and Cherokee County District Attorney’s Offices contributed to this case.
Assistant U.S. Attorney Cassandra J. Schansman is prosecuting the case.
For further information, please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Nashville U.S. Attorney and Former Commissioner of the Tennessee Department of Correction Sentenced in Federal and State Courts for Mail Fraud Scheme Victimizing Black FarmersRead the Press Release
Jackson, TN – Quenton Irwin White, the former U.S. Attorney for the Middle District of Tennessee as well as the former Commissioner of the Tennessee Department of Correction, has been sentenced to federal prison for a mail fraud scheme to defraud black farmer clients. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
The U.S. Attorney’s Office for the Western District of Tennessee charged that from September 2013 through October 2016, and after his term as U.S. Attorney, Quenton Irwin White 57, while in private practice as a licensed attorney in Nashville, Tennessee, sent postcards soliciting business from successful claimants in the class action case, "Black Farmers Discrimination Litigation." In the class case, successful claimants would receive an award of $62,500 because of USDA discriminatory loan practices. USDA would send $12,500 to IRS, with each claimant to receive $50,000. White did not distribute the $50,000 and used it for his own personal benefit. White entered a guilty plea on October 13, 2017, before Chief Judge S. Thomas Anderson.
U.S. Attorney D. Michael Dunavant said: "Mr. White used his privilege to practice law and a position of fiduciary trust to commit crimes of fraud and dishonesty that victimized vulnerable black farmers and their families for his own selfish personal gain. Nobody is above the law, and as a former U.S. Attorney and State Correction Commissioner, he should have known better. We are thankful for the partnership with the 25th Judicial District Attorney General’s Office in working together to hold White accountable in both federal and state courts for the betrayal of his professional oath, and we are glad to achieve justice for the victims in this case."
On three separate occasions, White was hired as the attorney to represent the estates from the Black Farmers Discrimination Litigation. At each transaction, the USDA would provide the $50,000 check to White, who in turn would deposit into the White Law Group’s escrow account. When claimants inquired about their funds, White would send a letter explaining that the funds were unavailable and the estate could not be closed. In another instance, White wrote checks to the heirs of a claimant, but checks were not honored by the bank due to insufficient funds in the escrow account.
25th Judicial District Attorney General Mark Davidson said: "Quenton I. White defrauded black farmers of over $45,000 on the front steps of the Fayette County Courthouse. He was subsequently prosecuted and convicted in Fayette County Circuit Court of three (3) felony counts of passing worthless checks and is serving jail time for those offenses, in addition to being ordered to pay restitution to his victims. As their attorney, and a former U.S. Attorney and Correction Commissioner, White abused a position of trust and further victimized minority victims of discriminatory loan practices. His State and Federal convictions and sentences demonstrate that such criminal activity will not be tolerated in the 25th Judicial District. We are thankful for our partnership with the U.S. Attorney’s Office to achieve justice for these victims and deter others from such criminal conduct. We also thank the Fayette County Sheriff’s Office for their investigation of these crimes."
On Friday, March 30, 2018, U.S. District Court Senior Judge S. Thomas Anderson sentenced White to 1 year and 1 day incarceration in federal prison, with 2 years supervised release. He was also ordered to pay $141,000 in restitution to the victims.
In addition to the federal case, White pleaded guilty in the Circuit Court of Fayette County, TN, to 3 Class C felonies for issuing 3 worthless checks that totaled $50,000. He was sentenced to a total effective state sentence of nine years, suspended after service of 180 days in the Fayette County Jail; supervised state probation; and payment of restitution to the victims in the total amount of $50,000. The state sentence was ordered to run concurrent to the federal sentence for the same criminal conduct. White was also disbarred from the practice of law by the Tennessee Supreme Court related to the conduct in this case, including misrepresentations to clients, misuse of clients’ monies, and failing to protect client’s property and funds.
The case was investigated by the Federal Bureau of Investigation, Internal Revenue Service, and the Fayette County Sheriff’s Office.
Assistant U.S. Attorney Victor L. Ivy prosecuted this case on the federal government’s behalf. Assistant District Attorney General Falen Chandler prosecuted the case on behalf of the State of Tennessee.
Former Erie Resident Sentenced to Prison for Drug and Firearms OffensesRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 30 months in prison on his conviction of violating federal drug and firearms laws in two separate cases, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Ramon Martinez-Silva, 38.
According to information presented to the court, in the case at Criminal No. 14-26 Erie, from on or about May 16, 2013, to on or about August 26, 2013, Martinez-Silva and a co-defendant conspired to distribute and possess with intent to distribute cocaine. Martinez-Silva sold cocaine on four occasions in the vicinity of 915 West 16th Street and other locations in Erie, Pennsylvania. In addition, at Criminal No. 15-20 Erie, Martinez-Silva possessed a firearm while being a convicted felon. According to information provided to the court, Martinez-Silva obtained a Marlin 9mm semi-automatic rifle from an individual at a residence at 529 East 13th Street in Erie and was then caught by law enforcement officers after selling that gun. Martinez-Silva was prohibited from firearm possession because of two prior felony convictions.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
United States Attorney Brady commended the EAGLE task force, which is comprised of members of the Federal Bureau of Investigation, the Erie Police Department, and the Pennsylvania Office of Attorney General Bureau of Narcotics Investigation for the investigation leading to the successful prosecution of Martinez-Silva.
Former Alabama Kindergarten Teacher Sentenced to Prison for Producing Child PornographyRead the Press Release
An Alabama man was sentenced today to 10 years in prison, to be followed by three years of supervised release, for producing child pornography between 1997 and 1998, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Jay E. Town of the Northern District of Alabama.
Charles Mark McCormack, 54, of Muscle Shoals, Alabama, pleaded guilty on Nov. 27, 2017, to one count of production of child pornography before Chief U.S. District Judge Karon O. Bowdre of the Northern District of Alabama.
According to admissions made in connection with his guilty plea, between Aug. 1, 1997, and Oct. 15, 1998, McCormack used an approximately six-year-old girl to engage in sexually explicit conduct for the purpose of producing visual depictions of the conduct, by videotaping the girl urinating in a bathroom in his Colbert County, Alabama residence. During a May 2016 search of McCormack’s residence, law enforcement discovered images of nude and topless females believed to constitute child pornography and a suitcase containing young girls’ panties. McCormack was employed as a kindergarten teacher at the time of the search.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations is investigating this case with support from the Georgia Bureau of Investigation. Trial Attorney William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Chinelo Dike-Minor of the Northern District of Alabama are prosecuting the case.
This investigation is a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Florence Resident Admits to Conspiring to DefraudRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Eric Wilson, of Florence, South Carolina, entered a guilty plea in federal court in Columbia, to conspiracy to commit wire, mail, or bank fraud, a violation of 18 U.S.C. § 1349. United States District Judge Mary Geiger Lewis, of Columbia, accepted the guilty plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that the U.S. Secret Service began investigating Wilson when it received a tip that he was selling counterfeit checks in Florence. A confidential informant was used to purchase counterfeit checks from Wilson in 2013 and 2014. An examination of the checks revealed that they were connected to an ongoing investigation involving $20,000,000 in losses being investigated by the New York Field Office of the Secret Service since 2007. The counterfeit checks were mailed to Wilson and others throughout the United States then either spent or sold.
Ms. Drake stated the maximum penalty for conspiracy to commit mail, wire or financial fraud is imprisonment for up to thirty years, a one million dollar fine and five years’ supervised release.
The case was investigated by agents of the Florence Police Department and the United States Secret Service. Assistant United States Attorney William E. Day, II, of the Columbia office is prosecuting the case.
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FCi- Berlin Inmate Pleads Guilty to AssaultRead the Press Release
CONCORD – U.S. Attorney Scott W. Murray announced today that Bashir Masaoud, 31, an inmate at FCI-Berlin pleaded guilty to two counts of assaulting staff at the prison while the staff were performing their official duties.
Documents filed with the court and statements made at the today’s hearing established that on May 23, 2017, Masaoud left his cell on Unit A-3 of the prison, crossed the common area of the unit, and grabbed the shirt of a correctional officer. Masaoud attempted to strike the officer with a closed fist. Masaoud was subdued with pepper spray and the assistance of other officers. Masaoud kicked another officer who was assisting in getting Masaoud under control.
A sentencing hearing is scheduled for July 17, 2018.
The case was investigated by the Bureau of Prisons staff at FCI-Berlin. The case is being prosecuted by Assistant U.S. Attorney Donald Feith.
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Erie Man Sentenced for Role in Food Stamp Fraud Scheme Carried Out at Erie Convenience StoreRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to two years probation and ordered to make $23,051 in restitution on his conviction of conspiracy to defraud the United States, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Dhia Almaleki, 47.
According to information presented to the court, Dhia Almaleki and three co-defendants were engaged in exchanging food stamps for cash on a regular basis at The Lotto World, also known as Samir’s and Lotto World Convenience, a convenience store located at 832 State Street in Erie. The four defendants also allowed customers to pay off store credit with food stamps.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Brady commended the United States Department of Agriculture, Office of Inspector General, the Department of Homeland Security Investigations, and the Erie Police Department for the investigation leading to the successful prosecution of Almaleki.
Erie Felon Admits Unlawful Possession of Ammunition, Improvised FirearmRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of violating federal firearm laws, United States Attorney Scott W. Brady announced today.
Jesse Lee Anderson, 37, pleaded guilty to two counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Anderson unlawfully possessed ammunition while being prohibited from firearm possession because he is a convicted felon. In addition, Anderson possessed an improvised firearm device utilizing two pipes capable of discharging a shot, not registered to him in the National Firearms Registration and Transfer Record.
Judge Cercone scheduled sentencing for July 16, 2018 at 12:45 p.m. The law provides for a total sentence of 20 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Marshal’s Service conducted the investigation that led to the prosecution of Anderson.
Erie Cocaine Dealer Will Spend 10 Years in Prison as Part of Plea DealRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of violating federal narcotics laws in two separate cases, United States Attorney Scott W. Brady announced today.
Marco Antonio Melchor, 37, pleaded guilty to one count at Criminal No. 15-02 Erie and one count at Criminal No. 15-04 Erie before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that from in and around June 2013 and January 2015, Melchor and his co-defendants conspired to possess with intent to distribute and distribute approximately 50 kilograms of cocaine.
According to the information provided to the Court in support of the guilty pleas, the investigation revealed that Melchor, the owner of the El Toro Loco restaurant in Erie, Pennsylvania, was engaged distributing cocaine and laundering the drug proceeds made by the selling of those drugs. The investigation revealed that the drug trafficking conspiracy involving Melchor was being sourced cocaine from individuals in Texas associated with organizations in Mexico. The drugs were imported into the United States and were then brought into Houston, Texas. Once in Houston, co-conspirators coordinated for the drug loads to be brought into Ohio and Pennsylvania. The cocaine was then transported to Erie, Pennsylvania and elsewhere using vehicles rigged with hidden compartments. Once the drugs arrived in Erie they were further distributed initially by Melchor and co-conspirator Maria Urrutia, who then further distributed most of the cocaine from their locations in Erie, Pennsylvania. Melchor also conspired with a co-conspirator in Lawrence, Massachusetts, to install a hidden compartment in a new vehicle, to expand their cocaine distribution efforts with the co-conspirator suppliers in Houston, Texas.
Judge Cercone scheduled sentencing for July 16, 2018 at 3 p.m. The law provides for a total sentence of life in prison, a fine of $4,000,000, or both for each count at Criminal No. 15-02 Erie and Criminal No. 15-04 Erie. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Homeland Security Investigations, the Drug Enforcement Administration, the Pennsylvania State Police, U.S. Border Patrol, the Internal Revenue Service, Criminal Investigation, the Pennsylvania Office of Attorney General Organized Crime Section, the U.S. Postal Inspection Service, the U.S. Marshals Service, the Bureau of Alcohol Tobacco Firearms and Explosives, and the Arkansas State Police conducted the investigation that led to the prosecution of Melchor.
El Reno Man Sentenced to 30 Months in Prison for Possessing Child PornographyRead the Press Release
OKLAHOMA CITY – MATTHEW EDWARD HARMS, 39, of El Reno, Oklahoma, has been sentenced to 30 months in prison for possessing child pornography, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
On February 2, 2016, Harms was indicted on one count of receipt of child pornography and one count of possession of child pornography. According to the charges, he used the Internet to receive child pornography and also possessed pornography involving a minor under the age of twelve engaging in sexually explicit conduct.
On February 22, 2017, Harms pleaded guilty to possessing child pornography. In particular, he admitted he had downloaded child pornography from the Internet onto one or more personal computing devices seized at his home by the FBI. He reserved his right to withdraw his guilty plea pending the result of a case before the U.S. Court of Appeals for the Tenth Circuit, United States v. Workman. That case involved the same multi-state FBI undercover operation that had ensnared Harms. On July 21, 2017, the Tenth Circuit ruled in favor of the United States in Workman.
On April 2, 2018, U.S. District Judge Vicki Miles-LaGrange sentenced Harms to 30 months in prison, to be followed by five years of supervised release. As part of the sentence, he must pay $3,000 in restitution to one of the victims identified in the child pornography he possessed. He was also ordered to forfeit the electronic devices involved in the offense.
This case is the result of an investigation by the FBI and was prosecuted by Assistant U.S. Attorney Julia E. Barry. It is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section of the Department of Justice, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Reference is made to the indictment and other public filings for further information.
East Chicago Man Sentenced to 240 Months in PrisonRead the Press Release
HAMMOND- Deandrea “Shorty Black” Davis, 37, of East Chicago, Indiana, was sentenced before Hammond District Court Judge James T. Moody on his plea of guilty to conspiracy to distribute cocaine and cocaine base and possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Thomas L. Kirsch II.
Davis was sentenced to 240 months imprisonment and 3 years of supervised release upon completion of his prison term.
According to documents in this case, in the fall of 2016, Davis, along with co-conspirators, distributed cocaine and crack cocaine in East Chicago. Davis utilized drug addicts as distributors, helped set up drug locations that fronted as legitimate residences and businesses and kept a 24/7 drug operation going in the heart of East Chicago which sent kilograms of cocaine into the neighborhood. Defendant also utilized a firearm to protect an East Chicago residence where he stored several kilograms of cocaine.
This case was investigated by the Drug Enforcement Administration Indiana HIDTA Group and the East Chicago Police Department and was handled by Assistant United States Attorney Thomas McGrath.
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During National Conference, U.S. Attorney Dunavant Selected to Serve on Three Attorney General SubcommitteesRead the Press Release
Memphis, TN – United States Attorney for the Western District of Tennessee D. Michael Dunavant attended the 2018 United States Attorneys’ National Conference at the Robert F. Kennedy Main Justice Headquarters Building in Washington, D.C.
Dunavant joined with other United States Attorneys from all 93 federal districts across the country for briefings and training on various DOJ priorities and topics, including national security, federal sentencing guidelines, narcotics enforcement, organized crime, the opioid epidemic, human trafficking, cybercrime and other technology-related investigations, asset forfeiture, violent crime and Project Safe Neighborhoods, financial crimes, professional responsibility, and office management. The U.S. Attorneys also met with Attorney General Jeff Sessions, Deputy Attorney General Rod Rosenstein, Solicitor General Noel Francisco, FBI Director Christopher Wray, DEA Acting Administrator Robert Patterson, U.S. Secretary of Labor Alexander Acosta, and Medal of Honor Recipient, U.S. Army Captain Florent Groberg.
During the National Conference, Dunavant was also selected to serve on three subcommittees of the Attorney General’s Advisory Committee (AGAC), Chaired by Richard Moore, U.S. Attorney for the Southern District of Alabama. The AGAC was created in 1973 to serve as the voice of U.S. Attorneys and to advise the Attorney General of the United States on policy, management, and operational issues impacting the offices of the U.S. Attorneys. With members representing various federal judicial districts, geographic locations, and small, medium and large size offices, the Committee meets with the Attorney General and works to further the goals as set by the President of the United States. Dunavant will be serving on the Violent and Organized Crime Subcommittee, the Controlled Substances Subcommittee, and the Native American Issues Subcommittee.
"I was honored to meet with all of my U.S. Attorney colleagues from across the country to share and receive information about our collective work to advance the priorities of the Department of Justice to promote public safety, enforce the rule of law, and achieve the effective administration of justice in our respective districts. I am pleased to serve on the AGAC subcommittees in order to focus on strategies and policies to combat violent and organized crime, reduce drug addiction and trafficking, and promote public safety in our tribal communities," said U.S. Attorney D. Michael Dunavant.
Attorney General Jeff Sessions along with U.S. Attorneys from all 93 Federal Districts
Attorney General Jeff Sessions and U.S. Attorney D. Michael Dunavant
District Court Enters Permanent Injunction Against New York Food Manufacturer Linked to Listeriosis OutbreakRead the Press Release
A federal court permanently enjoined a Walton, New York, creamery and its owner from manufacturing and distributing adulterated food, the Department of Justice announced today.
In a complaint filed March 19 at the request of the U.S. Food and Drug Administration (FDA), the United States alleged that Vulto Creamery LLC and its owner, Johannes H. Vulto, violated the Federal Food, Drug and Cosmetic Act by manufacturing and distributing ready-to-eat cheeses contaminated with the bacterium Listeria monocytogenes (L. mono). According to the complaint, a 2017 investigation by FDA and the Centers for Disease Control and Prevention (CDC) determined Vulto Creamery cheese was the source of a multistate listeriosis outbreak that sickened at least eight people, two of whom died. The defendants agreed to be bound by a consent decree filed with the complaint in U.S. District Court for the Northern District of New York.
“L. mono is a serious health threat that can prove fatal,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Consumers should be able to trust that the food they buy is safe, and we will continue working with FDA to take action against manufacturers that employ substandard practices.”
“The presence of this dangerous bacteria at a cheese manufacturing facility in Upstate New York is of grave concern,” said U.S. Attorney Grant C. Jaquith for the Northern District of New York. “We will continue to use all available tools to ensure that our food supply is safe and violations of laws protecting public heath are addressed.”
The complaint alleged that the defendants’ cheeses were prepared, packed or held under insanitary conditions. According to the complaint, company records revealed positive tests for a type of Listeria in the Vulto facility, but the defendants never attempted to identify the species of Listeria or its source. The complaint alleged the defendants also failed to conduct microbial testing of finished cheese products despite finding indications of Listeria on food contact surfaces. Vulto Creamery used raw, or unpasteurized, milk to make its ready-to-eat cheese.
The consent decree entered by the court permanently enjoins the defendants from violating the FDCA. Under the order, the defendants may not manufacture or distribute food unless they comply with specific remedial measures set forth in the decree. Among other requirements, the defendants must hire a qualified independent expert to develop an effective sanitation control program to adequately control for the risk of L. mono. Before manufacturing or distributing any food, defendants must first receive FDA’s written determination that their manufacturing practices comply with the law.
This matter was handled by Trial Attorney Natalie Sanders of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Michael Gadarian of the U.S. Attorney’s Office for the Northern District of New York, with the assistance of Associate Chief Counsel for Enforcement Leslie Cohen of the FDA’s Office of General Counsel, Department of Health and Human Services.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of New York, visit its website at https://www.justice.gov/usao-ndny.
Detroit Woman Pleads Guilty to Federal Pill ChargeRead the Press Release
HUNTINGTON, W.Va. – A Detroit woman caught with pain pills in Huntington in 2015 pled guilty today to a federal drug crime, announced United States Attorney Mike Stuart. Kieyonda Annette-Marie Toler, 28, entered her guilty plea to possession with intent to distribute oxymorphone in federal court in Huntington. United States Attorney Stuart commended the work of the Huntington FBI Drug Task Force.
“Detroit drug dealers have wreaked havoc in our communities, particularly in Huntington,” said United States Attorney Mike Stuart. We are working with our law enforcement partners to aggressively prosecute every case. At some point, even Detroit drug thugs should be able to figure out that they are not welcome here.”
On December 3, 2015, members of the Huntington FBI Drug Task Force were conducting surveillance at the Greyhound Bus Station located in Huntington. Officers observed Toler exit a bus that had arrived from Detroit, Michigan and approached Toler to speak with her. Officers subsequently seized marijuana and an oxymorphone tablet Toler had in possession and Toler was placed under arrest. After Toler was transported to the Western Regional Jail, a correctional officer seized an additional 58 oxymorphone tablets Toler had concealed in her pants. Toler admitted that she intended to provide some of the tablets to another individual for distribution.
Toler faces up to 20 years in federal prison when she is sentenced on July 19, 2018.
Assistant United States Attorney Joseph F. Adams is responsible for the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Department of Justice Files Motion in Multi-District Opioid CaseRead the Press Release
Attorney General Jeff Sessions today announced that the Department of Justice has filed a motion to participate in settlement discussions and as a “friend of the court” in the ongoing Multi-District Litigation against opioid manufacturers and distributors.
“Following the leadership of President Trump, for the past year the Department of Justice has vigorously fought the prescription opioid crisis, deploying new tools and resources to stop the traffickers and corrupt medical professionals who are profiting off of addiction,” said Attorney General Sessions. “We are determined to continue making progress. Today, we are taking a new step to help those who have suffered the consequences of the opioid epidemic by offering our assistance as friend of the Court in ongoing litigation against opioid manufacturers and distributors. We have already filed a statement of interest in this case, arguing that the taxpayer has paid a heavy price because of dishonest opioid marketing practices, and deserves to be compensated. Now we are formally seeking to provide the federal government’s expertise and legal counsel to the court on a potential settlement. We are determined to see that justice is done in this case and that ultimately we end this nation’s unprecedented drug crisis.”
A “friend of the court” is not a direct party to the case, but provides information and expertise that may help achieve justice in the case.
The Department’s participation, if granted by the court, will ensure that the court will be better able to consider the national consequences of the case, and in particular any legal obligations of settling parties to reimburse the federal treasury.
In addition to this filing, the United States is pursuing its own actions against bad actors at every level of the opioid distribution system through the Prescription Interdiction and Litigation (PIL) Task Force, which Attorney General Sessions created in February.
The Attorney General has directed the PIL Task Force to examine existing state and local government lawsuits against opioid manufacturers to determine what assistance, if any, federal law can provide in those lawsuits.
Today’s filing will build on a number of new initiatives begun by Attorney General Sessions over the past year that will help us end the drug crisis, including the following:- In July, the Attorney General announced charges against more than 120 defendants, including doctors, for crimes related to prescribing or distributing opioids and other dangerous narcotics.
- One week later, the Attorney General announced the seizure of AlphaBay, the largest criminal marketplace on the Internet. This site hosted some 220,000 drug listings – including more than 100 vendors advertising fentanyl – and was responsible for countless synthetic opioid overdoses, including the tragic death of a 13-year old in Utah.
- In August, the Attorney General created the Opioid Fraud and Abuse Detection Unit, a new data analytics program to help find evidence of overprescribing and opioid-related health care fraud.
- The Attorney General then assigned 12 experienced Assistant United States Attorneys to opioid “hot-spots” to focus solely on investigating and prosecuting opioid-related health care fraud. By November they had begun issuing indictments.
- In October, the Department announced the first-ever indictments of Chinese nationals and their North American-based traffickers and distributers for separate conspiracies to distribute fentanyl and other opioids in the United States.
- Also in October, the DEA announced the establishment of six new enforcement teams focused on combatting the flow of heroin and illicit fentanyl into the U.S. These enforcement teams are based in communities facing some of the most significant challenges with heroin and fentanyl.
- In 2017, the DEA held two of its National Prescription Drug Takeback Days, when people can dispose of unnecessary and potentially dangerous drugs with no questions asked. In total, DEA took a record 956 tons of drugs out of American communities.
- In January 2018, the Department announced a new resource to target traffickers who sell drugs online called J-CODE: Joint Criminal Opioid Darknet Enforcement team. The J-CODE team will coordinate efforts across the FBI’s offices all around the world – bringing together DEA, our Safe Streets Task Forces, drug trafficking task forces, Health Care Fraud Special Agents, and other assets – effectively doubling the FBI’s investment into fighting against online drug trafficking.
- Also in January 2018, the DEA announced a 45-day surge of Special Agents, Diversion Investigators, and Intelligence Research Specialists to focus on pharmacies and prescribers who are dispensing unusual or disproportionate amounts of drugs.
- On February 7, 2018, the DEA placed all fentanyl analogues not already regulated by the Controlled Substances Act into Schedule I – the category for substances with no currently accepted medical use – for at least two years. This makes it harder for people to acquire illicit fentanyl and easier for law enforcement to investigate and prosecute drug traffickers.
Note: To view the Motion to Participate in Settlement Discussion and as Friend of the Court click here.
DEA Surge in Drug Diversion Investigations Leads to 28 Arrests and 147 Revoked RegistrationsRead the Press Release
For 45 days in February and March, the U.S. Drug Enforcement Administration surged its enforcement and administrative resources to identify and investigate prescribers and pharmacies that dispensed disproportionately large amounts of drugs. The ultimate goal of the surge was remediating or removing those whose actions perpetuate the controlled prescription drug crisis in America, particularly opioid drugs.
During that period, the DEA surged the efforts of special agents, diversion investigators, and intelligence research specialists to analyze 80 million transaction reports from DEA-registered manufacturers and distributors, as well as reports submitted on suspicious orders and drug thefts and information shared by federal partners, such as the Department of Health and Human Services. This resulted in the development of 366 leads to DEA field offices, 188 of which (51 percent) resulted in active investigations by DEA’s 22 field divisions.
“In the midst of the deadliest drug epidemic in American history, we need all hands on deck,” said Attorney General Jeff Sessions. “That’s why the Department of Justice has made enforcing our drug laws a priority. Over the last 45 days, the DEA has surged resources and personnel to prevent the diversion of opioids, arresting dozens of people and taking away drug dispensing authority from nearly 150 medical professionals. And our efforts are just getting started. I recently announced that DEA will surge task force officers and more analysts to places across America where the opioid crisis is at its worst. These new resources will help us catch and convict more of the drug traffickers and corrupt medical professionals who are fueling the opioid crisis.”
“DEA will use every criminal, civil, and regulatory tool possible to target, prosecute and shut down individuals and organizations responsible for the illegal distribution of addictive and potentially deadly pharmaceutical controlled substances,” said Acting DEA Administrator Robert W. Patterson. “We must stop the loss of our loved ones to these drugs.”
The culmination of those investigations was 28 arrests, 54 other enforcement actions including search warrants and administrative inspection warrants, and 283 administrative actions of other types. These additional actions included scheduled inspections, letters of admonition, memoranda of agreement/understanding, surrenders for cause of DEA registrations, orders to show cause, and immediate suspension orders (the immediate revocation of registrations).
DEA works with various federal and state partners on data sharing agreements to enhance its ability to identify individuals and companies who are contributing to the prescription opioid crisis, including a coalition of 41 state attorneys general and the Department of Justice’s Opioid Fraud and Detection Unit, an initiative of Attorney General Sessions. It is also dedicating additional resources to its domestic divisions to carry out investigations.Columbus Man Sentenced for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – A Columbus man who was caught selling heroin in Huntington in 2016, was sentenced today to 21 months in federal prison, announced United States Attorney Mike Stuart. Traemone Khalil Miller, 22, previously pleaded guilty to distribution of heroin and fentanyl in federal court in Huntington. United States Attorney Stuart praised the excellent investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“This is just the latest example of an out-of-state drug thug bringing deadly drugs and violence to Huntington,” said United States Attorney Mike Stuart. “Enough is enough. I’ve recently announced “Project Huntington,” which is bringing all the federal, state and local law enforcement resources we can muster to lock up every drug dealer we can find.”
On July 27, 2016, a confidential informant arranged to purchase heroin from Miller at the Marcum Terrace apartment complex in Huntington. The informant, accompanied by an undercover agent, traveled to that area where the informant met with Miller and others in an apartment. Miller then distributed what he represented to be heroin to the informant. A forensic chemist later analyzed the substance and confirmed it to be heroin mixed with fentanyl. Fentanyl is a synthetic opioid which is anywhere from 25 to 50 times more potent that heroin.
As part of his plea, Miller also admitted that he arranged an additional drug deal with the informant involving heroin mixed with fentanyl on August 3, 2016, and further helped facilitate the informant’s purchase of a firearm on August 25, 2016.
Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by United States District Judge Robert C. Chambers.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District. This case was also brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Chinese National Sentenced for Fraudulently Obtaining a Student VisaRead the Press Release
BOSTON - A Chinese national pleaded guilty and was sentenced today in federal court in Boston for defrauding the Department of Homeland Security (DHS) in its administration of the Student and Exchange Visitor Program.
Leyi Huang, 21, a Chinese national residing in Erie, Penn., pleaded guilty to one count of conspiracy to defraud the United States. U.S. District Court Judge F. Dennis Saylor sentenced Huang to time served and ordered her immediately removed to the People’s Republic of China. In May 2017, Huang and three other Chinese nationals were arrested and charged for their roles in a college admissions exam scam.
In 2016, Huang entered into an agreement with a co-conspirator to have the co-conspirator take the Test of English as a Foreign Language (TOEFL) exam under Huang’s identity. On March 5, 2016, using Huang’s Chinese passport and TOEFL exam registration, the co-conspirator took the TOEFL exam under Huang’s identity at the TOEFL exam center in Burlington, Mass. Subsequently, the TOEFL score achieved by the co-conspirator was fraudulently awarded to Huang, which she used to gain entrance to an American university that participates in DHS’s Student and Exchange Visitor Program (SEVP). The university has a minimum TOEFL score requirement that Huang had failed to achieve on previous attempts. Once being accepted into the SEVP, Huang was issued a student visa by the Department of State to enter and remain in the United States for the duration of her studies.
United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and William B. Gannon, Special Agent in Charge of the U.S. State Department's Diplomatic Security Service, Boston Field Office, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Major Crimes Unit prosecuted the case.
Brazilian Couple Charged in ATM Skimming SchemeRead the Press Release
BOSTON – A Brazilian couple was arrested on Friday, March 30, 2018, and charged in federal court in Boston in connection with an ATM skimming operation.
Alexandre Kawamura, 42, was charged with possession of device-making equipment, and Karem Kawamura, 25, was charged with aiding and abetting the use of a counterfeit access device.
According to the complaint affidavits, the ATM skimming equipment consisted of devices attached to ATM card slots that recorded bank account information on the magnetic strips of debit cards that unwitting victims inserted into ATMs, combined with pinhole cameras that captured the victims entering their PINs on ATM keypads. Alexandre Kawamura was caught on ATM security video placing and removing skimming devices on drive-up ATMs at Eastern Bank branches in Saugus, Stoneham, and Medford between Feb. 24 and March 16, 2018. On two occasions, when he drove up to the ATMs to check on the devices, Karem Kawamura was in the car.
On March 16, 2018, a bank customer called local police to report that he had found and removed a skimming device from the drive-up ATM at the Eastern Bank branch in Stoneham. Police responded and discovered that the pinhole camera was still attached to the ATM. They set up surveillance while bank security personnel monitored the ATM’s security video, and shortly before 11 pm, Alexandre Kawamura drove up to the ATM in a rental car, looked around for the skimming device, never inserted a card into the machine, and then drove off. Stoneham Police stopped Alexandre Kawamura’s car shortly thereafter. Mr. Kawamura had a Brazilian passport in his true name, but had rented the vehicle under an alias.
The same alias was embossed on a credit card in Alexandre Kawamura’s possession when he was arrested, but the bank account information contained in the magnetic strip of the card belonged to a bank customer whose debit card had been compromised at one of the Eastern Bank ATMs the day before. Eastern Bank records showed that, on the day of Mr. Kawamura’s arrest, purchases were made on the bank customer’s account at Dick’s Sporting Goods in Medford. The store’s security camera recorded the defendants shopping at that store during the time when the bank customer’s account was used to buy a shirt, jacket, and hat.
After Mr. Kawamura was arrested, federal agents located Ms. Kawamura at an Extended Stay America in Woburn. On March 30, agents executed a search warrant for the room used by Ms. Kawamura and found the shirt, jacket, and hat that had been purchased at Dick’s Sporting Goods.
The charge of possession of device-making equipment provides for a sentence of no greater than 15 years in prison, three years of supervised release, and a fine of up to $250,000. The charge of aiding and abetting the use of a counterfeit access device provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; Medford Police Chief Leo Sacco; Milton Police Chief John E. King; Saugus Police Chief Domenic J. DiMella; Stoneham Police Chief James T. McIntyre; and Woburn Police Chief Robert J. Ferullo Jr. made the announcement today. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the complaints are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boston Gang Member Sentenced for Cocaine DistributionRead the Press Release
BOSTON – An identified member of the Orchard Park Trailblazers was sentenced today in federal court in Boston for selling crack cocaine in and around Roxbury’s Orchard Gardens Housing Development.
Lyndon Scott, a/k/a “L-Dot,” a/k/a “L-Scott,” 28, of Boston, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 15 months in prison and six years of supervised release. While on supervised release, Scott will be precluded from entering the Orchard Gardens Housing Development and being in contact or associating with approximately 25 individuals from the same area. In November 2017, Scott pleaded guilty to distribution of cocaine base within 1,000 feet of a school.
On April 14, 2017, Scott sold cocaine base, a/k/a crack cocaine, to a cooperating witness near a school in Roxbury. Scott told the cooperating witness that the crack was “great,” and that the cooperating witness would be returning to buy more from him. According to court documents, Scott has twice been convicted of illegal firearm possession and was on pretrial release for an unrelated drug offense when he sold the crack cocaine to the cooperating witness.
Scott is one of 12 defendants arrested and charged in June 2017 following a nearly two-year investigation into the high concentration of crime in and around the Orchard Gardens Development, the largest publically funded housing development in Roxbury, which is also adjacent to area schools and Dudley Square. According to court documents, the crime stems, in part, from the illegal activities of the members and associates of the Orchard Park Trailblazers, who allegedly have active feuds with rival gangs throughout the city that have produced numerous crimes of violence.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner William Evans made the announcement today.
Allen Man Pleads Not Guilty to Being an Accessory to Second Degree Murder and Making False StatementsRead the Press Release
United States Attorney Ron Parsons announced that an Allen, South Dakota, man has been indicted by a federal grand jury for Accessory after the Fact and False Statement or Representation.
Nathaniel "Thomas" Waters, age 45, appeared before U.S. Magistrate Judge Daneta Wollmann and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 15 years in custody and/or a $125,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Waters being an accessory to second degree murder of his nephew, Ray Waters, Jr., on October 16, 2017, at Allen. Waters provided false statements to law enforcement about his location at the time of a fire and the homicide.
The charges are merely accusations and Waters is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant U.S. Attorney Megan Poppen is prosecuting the case.
Waters was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for June 26, 2018.
If you have information concerning this crime, please contact FBI Special Agent Robert Bennett at 605-343-9632.
Alabama Legislator, Alabama Lobbyist, and Owner of California Company Charged with Public CorruptionRead the Press Release
On Monday, April 2, 2018, three individuals—two of whom reside in Alabama and one who resides in California—were arrested on charges stemming from their involvement in a public corruption scheme, announced United States Attorney Louis V. Franklin, Sr. The Alabama defendants are State Representative Jack D. Williams, 60, of Vestavia Hills, Alabama and lobbyist Martin J. “Marty” Connors, 61, of Alabaster, Alabama. The California defendant is G. Ford Gilbert, 70, of Carmichael, California.
According to the indictment, Defendant Gilbert is the owner of a California company that operates diabetes treatment centers throughout the world—Trina Health, LLC (Trina Health). In 2014 and 2015, Trina Health opened three clinics in Alabama. Soon thereafter, the state’s largest health insurer, Blue Cross and Blue Shield of Alabama (a.k.a. Blue Cross), informed Trina Health that it would not cover the treatments provided by them. Gilbert then schemed to force Blue Cross to change its position.
He came up with a plan to push a bill through the Alabama Legislature’s 2016 session that would require Blue Cross to cover the treatments. Gilbert then made payments to State of Alabama House Majority Leader Micky Hammon in exchange for his efforts on behalf of the bill. Gilbert also hired Defendant Connors to act as a lobbyist on behalf of the bill. Connors knew of Gilbert’s payments to Majority Leader Hammon. Hammon and Connors then recruited Defendant Williams, the chairman of the Commerce and Small Business Committee of the Alabama House of Representatives, to hold a public hearing on the bill. Williams also knew of the payments to Hammon and acted in part to help Hammon, who, as everyone in the scheme knew, was experiencing grave financial problems.
Based on these events, the indictment charges all three defendants with conspiracy to commit bribery related to federal programs, conspiracy to commit honest services wire fraud, and honest services wire fraud. Additionally, the indictment alleges that Gilbert and Connors committed the substantive offense of bribery related to federal programs. Gilbert alone is charged with wire fraud, health care fraud, and interstate travel in aid of racketeering. The indictment does not include charges against Hammon because Hammon has already been convicted in federal court of other offenses.
If convicted of the most serious offenses, each defendant in this case faces a maximum sentence of 20 years in prison, significant monetary penalties, asset forfeiture, and restitution.
An indictment merely alleges that crimes have been committed. Each defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The United States Postal Inspection Service investigated the case with the assistance of the Federal Bureau of Investigation. Assistant United States Attorneys Jonathan S. Ross and Joshua Wendell are prosecuting the case.
Friday 30 March 2018
Yevgeniy Nikulin Appears in U.S. Court Following ExtraditionRead the Press Release
SAN FRANCISCO – Yevgeniy Aleksandrovich Nikulin made his initial appearance in federal court today following his extradition from the Czech Republic, announced Acting United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. He appeared before Jaqueline Scott Corley, United States Magistrate Judge in San Francisco.
Nikulin, 30, of Moscow, Russia, was charged in a 2016 indictment with illegally accessing computers belonging to LinkedIn, Dropbox, and Formspring, each of which has its headquarters in the San Francisco Bay area. The indictment further alleges that the defendant accessed the computers without authorization and that he obtained information from the computers. According to the indictment, the defendant also caused damage to computers belonging to a LinkedIn employee and to Formspring by transmitting a program, information, code, or command. Nikulin is alleged to have used the credentials of LinkedIn and Formspring employees without their knowledge or authorization in connection with the computer intrusions. The indictment charges that Nikulin engaged in a conspiracy with unnamed co-conspirators to traffic stolen Formspring user credentials.
Nikulin was arrested on October 5, 2016, by Czech Republic law enforcement officials pursuant to an Interpol Red Notice, and has been in Czech custody since that time. The United States submitted an official request to the Czech government for his extradition in November 2016. On March 29, 2018, the Minister of Justice of the Czech Republic ordered Nikulin extradited to the United States. Nikulin was transported to the United States by agents of the Federal Bureau of Investigation.
“Computer hacking is not just a crime, it is a direct threat to the security and privacy of Americans,” Attorney General Jeff Sessions said. “In this case, the defendant, a Russian national, is accused of breaking into the computer system of several important American companies using stolen identities, and potentially gaining access to the personal information of millions of Americans. This is deeply troubling behavior once again emanating from Russia. We will not tolerate criminal cyber-attacks and will make it a priority to investigate and prosecute these crimes, regardless of the country where they originate.
“I want to thank our partners in the Czech Republic for their cooperation in the extradition process, and I also want to thank the FBI, the Department of Justice’s Office of International Affairs, and Assistant U.S. Attorneys Michelle Kane and Matt Parella for their hard work. The Department of Justice will continue our work to defend the safety, property, and privacy of the American people from the threat of foreign hackers.”
“The Department of Justice is committed to investigating and bringing to justice hackers who illegally access computer systems to steal information,” said Acting U.S. Attorney Alex G. Tse. “Hackers cause millions of dollars of damage to computer systems and victimize innocent users. We will use the considerable means at our disposal to find, capture, and bring to justice computer hackers who commit crimes against U.S. computer systems and the people who use and rely on those systems, regardless of where those hackers commence their attacks. The arrest and extradition of Nikulin is the result of effective cooperation between U.S. and our international law enforcement partners to combat computer crime.”
“The FBI will not allow international cyber criminals to operate with impunity,” said FBI Special Agent in Charge John F. Bennett. “Nikulin allegedly targeted three Bay Area companies through cyber-attacks, and will now face prosecution in the United States. This extradition is a success for U.S. law enforcement and our partners overseas.”
Nikulin is charged with three counts of computer intrusion, in violation of 18 U.S.C. § 1030(a)(2)(C); two counts of intentional transmission of information, code, or command causing damage to a protected computer, in violation of 18 U.S.C. § 1030(a)(5)(A); two counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A(a)(1); one count of trafficking in unauthorized access devices, in violation of 18 U.S.C. § 1029(a)(2); and one count of conspiracy, in violation of 18 U.S.C. § 371.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces the following maximum penalties:
- 18 U.S.C. § 371 (conspiracy): Five years of imprisonment, $250,000 fine, three years of supervised release, $100 special assessment, forfeiture, and restitution.
- 18 U.S.C. § 1028A(a)(1) (aggravated identity theft): Two-year mandatory minimum sentence of imprisonment to run consecutive to any other sentence and in addition to the sentence for the underlying felony, $250,000 fine, three years of supervised release, $100 special assessment, restitution.
- 18 U.S.C. § 1029(a)(2) and (c)(1)(A)(i) (trafficking in unauthorized access devices): Ten years of imprisonment, $250,000 fine, three of years supervised release, $100 special assessment, forfeiture, and restitution.
- 18 U.S.C. § 1030(a)(2)(C) and (c)(2)(B) (computer intrusion): Five years of imprisonment, $250,000 fine, three years of supervised release, $100 special assessment, forfeiture, and restitution.
- 18 U.S.C. § 1030(a)(5)(A) and (c)(4)(B)(i) (causing damage to a protected computer): Ten years of imprisonment, $250,000 fine, three years of supervised release, $100 special assessment, forfeiture, and restitution.
However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Nikulin pleaded not guilty to the charges. Magistrate Judge Corley scheduled Nikulin’s next appearance for April 4, 2018, for a detention hearing.
Michelle J. Kane and Matt Parrella are the Assistant U.S. Attorneys who are prosecuting the case, with the assistance of Vanessa Quant and Elise Etter. The prosecution is the result of a four-year investigation by the Federal Bureau of Investigation with the assistance of authorities in the Czech Republic and the U.S. Department of Justice’s Criminal Division, Office of International Affairs.
Wyoming County Man Pleads Guilty to Insurance Fraud by ArsonRead the Press Release
BLUEFIELD, W.Va. – A third man pled guilty today in federal court for his roles in a scheme to commit insurance fraud by arson, announced United States Attorney Michael B. Stuart. James Keith Browning, age 54, of Hanover, Wyoming County, pled guilty to a charge of arson to commit wire fraud before Senior United States District Judge David A. Faber. United States Attorney Mike Stuart commended the work of the United States Postal Inspection Service, the West Virginia State Police and the West Virginia Office of the Insurance Commissioner for their joint participation in the investigation.
“Insurance fraud and arson are serious crimes,” said United States Attorney Mike Stuart. “Arson risks property and lives and insurance fraud defrauds all of us. We will prosecute those crimes every chance we get.”
In the spring of 2013, Browning, Dudley Bledsoe and James “Punkin” Lester devised a scheme to purchase a house, place it in Browning’s name, obtain insurance on it and burn it to collect the proceeds. The property was located at 9068 Interstate Highway in Ikes Fork, West Virginia. Sometime during the week of August 12-16, 2013, Lester, Bledsoe and Browning manufactured an alibi they could use for when the house was burned. Sometime after the creation of the plan for the alibi, Bledsoe and Browning went to the house in Bledsoe’s vehicle to prepare the house to be burned. The house burned on August 16, 2013, while Browning and Lester were at the West Virginia State Fair. Browning then filed a fraudulent claim with the insurance company for the loss of the house and for items purportedly contained in the house. Ultimately, Browning received $100,000 from the insurance company for the false claim. Browning then divided the proceeds with Bledsoe and Lester. Browning faces 10 years imprisonment when he is sentenced on July 25, 2018.
Bledsoe, age 63, of Hanover, West Virginia, pled guilty on March 14 to related charges and is awaiting sentencing. Ricky Gleason, 54, of Peach Creek, West Virginia, also pled guilty on March 14 to related charges involving a similar scheme connected to a house in Huntington, West Virginia. The sentencing hearings for Bledsoe and Gleason is scheduled for May 30, 2018.
Windel Lester, James Edward Lester, also known as “Punkin,” Georgetta Kenney, and Greg A. Lester are currently facing charges in a 40 count indictment for their respective roles in the scheme. Their trial is set for May 8, 2018, in Bluefield.
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Worcester Men Charged with Drug and Firearm OffensesRead the Press Release
BOSTON – Two Worcester men were indicted yesterday in federal court in Worcester for their roles in a fentanyl, heroin, cocaine, and crack cocaine conspiracy.
Daniel Donald, 36, and Robert Young, 46, were indicted on one count of conspiracy to distribute heroin, cocaine, cocaine base (a/k/a crack cocaine) and fentanyl. Donald was also charged with possession with intent to distribute over 100 grams of heroin, over 500 grams of cocaine, over 28 grams of crack cocaine, and fentanyl, as well as being a felon in possession of a firearm.
Donald and Young were previously charged by complaint on Dec. 1, 2017. According to court documents, in April 2017, federal law enforcement began investigating ongoing drug sales by Donald and Young at a location on Groton Street in Worcester. On Nov. 30, 2017, law enforcement executed a search warrant at the Groton Street location and seized a kilogram of cocaine, approximately 490 grams of heroin, approximately 88 grams of crack cocaine, dozens of pills containing fentanyl, and a loaded 9 mm firearm.
Young faces a sentence of no greater than 40 years in prison, at least four years of supervised release, and a fine of up to $5 million. The drug charges against Donald provide for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release, and a fine of $5 million. The firearm charge provides for a mandatory minimum sentence of 15 years and up to life in prison, up to three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Worcester Police Chief Stephen Sargent made the announcement. Assistant U.S. Attorney Greg A. Friedholm, Chief of Lelling’s Worcester Branch Office, is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Winter Garden Man Pleads Guilty to Conspiring to Defraud Insurers in Staged Accident ScamRead the Press Release
Orlando, Florida – Jonathan Brown (33, Winter Garden) today pleaded guilty to conspiracy to commit mail fraud. He faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Brown and three others conspired to defraud insurance companies by submitting false claims following a staged car accident in Orange County, in May 2013. Brown, two co-conspirators, and the children of one of the conspirators were occupants in a car that was rear-ended by a vehicle being driven by a third co-conspirator in a pre-planned collision. After the collision, the conspirators, who had known each other for years, agreed to tell first responders that they did not know each other. They also agreed to seek emergency care for fictitious injuries purportedly sustained during the collision, and sought treatment from other medical providers for months following the collision. Brown and his co-conspirators then submitted fraudulent claims for medical expenses for unnecessary treatment, lost wages that had never incurred, attorney fees arising from threatened litigation, and compensatory damages for pain and suffering to their insurers, causing the insurers to pay out thousands of dollars based on those false claims.
This case was investigated by the Florida Department of Financial Services and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Eric K. Gerard.
Vancouver Man Convicted of Massive Telemarketing Scheme After Fighting Extradition for Ten YearsRead the Press Release
LOS ANGELES – The owner of a Canadian telemarketing operation was convicted yesterday by a federal jury of mail and wire fraud for having orchestrated a bogus telemarketing scheme that defrauded at least 60,000 victims of over $18 million dollars.
After fighting extradition for over 10 years, Mark Eldon Wilson, 57, of Vancouver, British Columbia, was convicted following a five-day jury trial before United States District Judge S. James Otero. The federal jury convicted Wilson of seven counts of mail fraud and two counts of wire fraud for having orchestrated a fraudulent cross-border telemarketing scheme that targeted mostly elderly victims and offered a bogus credit card fraud protection program.
The evidence admitted at trial showed that Wilson operated a phony telemarketing scheme through various companies – including OPCO International Inc. and American Fraud Watch Services - from 1998 through 2001 targeting victims in the United States. At his direction, telemarketers misled victims into believing that defendant’s companies were affiliated with victims’ credit card companies and falsely suggested to victims they were vulnerable to credit card fraud and would be held liable for fraudulent charges on their cards. They sold the victims a non-existent credit card “protection” service for approximately $300, and falsely promised a 100% money-back guarantee.
In many instances without authorization, Wilson’s companies charged victims’ credit cards for the full amount of the “protection” service fee, even though they told victims the fee for the service was as little as $2 per month. In reality, Wilson and his companies were not associated with victims’ credit card companies, the credit card companies would not actually hold victims liable for charges arising from credit card fraud, and defendant’s companies did not provide the promised credit-card-monitoring and protection services Wilson claimed they would provide.
Between 1998 and 2001, Wilson and his telemarketing companies solicited over $18,000,000 from more than 60,000 victims in 37 different states, including a number of victims from the Central District of California. Wilson profited handsomely from his fraud, transferring over $100,000 in profits to an offshore account in the South Pacific Island of Vanuatu, purchasing a number of vehicles in the name of his telemarketing companies, and negotiating the purchase of at least one luxury boat that was selling for over $400,000.
At trial, the government called approximately 22 witnesses, including several insiders who worked at Wilson’s companies, numerous victims who were directly defrauded through his efforts, two expert witnesses on credit-card processing and cross-border telemarketing fraud, as well as playing actual undercover recordings that captured the bogus sales pitches of Wilson’s telemarketers.
With a total of nine convictions on mail and wire fraud as well as the jury’s multiple findings that these crimes occurred in connection with the conduct of telemarketing, Wilson faces a maximum sentence of 90 years of imprisonment.
Wilson, who was extradited from Canada in late February 2017 after lengthy proceedings, remains in custody following his convictions, and is scheduled to be sentenced on July 30, 2018.
This case was jointly investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, the Federal Trade Commission, the Royal Canadian Mounted Police, and the Department of Justice - Government of Canada.
The case is being prosecuted by Assistant United States Attorney and Senior Litigation Counsel Paul Stern of the Major Frauds section, and Assistant United States Attorneys Roger Hsieh and Joseph Woodring of the General Crimes section.
U.S. Attorney John F. Bash Announces Supervisory Staff ChangesRead the Press Release
United States Attorney John F. Bash has announced changes to his supervisory staff within the District.
Effective Monday, April 2, Ashley Hoff will serve as the First Assistant United States Attorney. Hoff, who currently serves as the City Chief overseeing the Austin Division, will supervise both the Criminal Division and the Civil Division. Hoff began her federal service in 2000, when she left her position as a prosecutor in the Harris County District Attorney’s Office to become a Special Assistant United States Attorney for the Southern District of Texas. In that role, Hoff prosecuted federal firearms offenses as part of the Texas Exile program, which was established in partnership with the Texas Attorney General’s Office and the United States Department of Justice. Hoff became an Assistant United States Attorney in the Southern District of Texas in June 2001 and joined that office’s Counterterrorism Section after the September 11th attacks. In late 2003, Hoff began her service in the Austin Division of the Western District of Texas, where she prosecuted a variety of federal offenses in the areas of violent crime, narcotics, immigration enforcement, and financial fraud. She was twice recognized with the Western District of Texas James DeAtley Award for an exceptionally complex, difficult, or significant prosecution. Hoff was promoted to Chief of the Austin Division in 2012. Hoff graduated from Baylor University School of Law in 1994 and from Texas Christian University in 1991.
Also effective Monday, April 2, Kristy Callahan will serve as the Executive Assistant United States Attorney, a newly created position in the District. In that role, Callahan will supervise the Administrative Division, the Legal Support Division, and a new Asset Recovery Division, which will comprise the Asset Forfeiture Unit and the Financial Litigation Unit (FLU). Callahan began her service in the District in August 2008 as an Assistant United States Attorney assigned to handle border-fence condemnation cases and defensive civil litigation. In June 2012 she was promoted to Chief of the FLU, leading its mission to aggressively enforce criminal judgments by recovering losses sustained by victims of crime. In that role, Ms. Callahan has worked to restructure the FLU with the Nation’s largest caseload into a more productive and efficient team capable of enhancing criminal prosecutions. As a result of those efforts, earlier this year she received the Director’s Award for Excellence in Management from the Executive Office for United States Attorneys. She is a member of the national FLU Working Group and a regular instructor at the National Advocacy Center, which trains federal attorneys and support staff throughout the United States. Callahan graduated cum laude from the University of Mississippi Law School in 2003 and summa cum laude from the University of North Texas in 1996.
“Ashley Hoff and Kristy Callahan are brilliant and experienced attorneys. Critically, they each have thrived in leadership roles within the District and will bring exceptional management skills to their new positions,” stated United States Attorney Bash. “Ms. Hoff and Ms. Callahan will be essential to achieving my priorities in the District, including strengthening border security, slashing violent crime, and enhancing the integrity of our public institutions.”
Current First Assistant United States Attorney Richard Durbin will serve as a Senior Litigation Counsel for the District. In that role, he will mentor other attorneys and bring his vast experience and knowledge to bear on significant matters within the District. “Richard Durbin has an unrivaled record of distinguished service in the U.S. Attorney’s Office,” stated United States Attorney Bash. “He has humbly served the people of Central and West Texas for close to 40 years, including as United States Attorney, First Assistant United States Attorney, and Chief of the Criminal Division. He is quite simply a legend. I am grateful for his continued service to this District and the Department of Justice.”
Tybee Island Shrimper Convicted of Falsifying Documents, Mail Fraud and Money LaunderingRead the Press Release
SAVANNAH, GA: On March 22, 2018, Michael Brian Anderson, a local Tybee Island shrimper and fisherman, was convicted by a federal jury on three counts of false statements, four counts of mail fraud, and two counts of money laundering. United States District Court Judge William T. Moore, Jr. presided over Anderson’s three-day trial.
According to the evidence presented at trial, Brian Anderson submitted multiple false claims to Customs & Border Protection (CBP) seeking millions of dollars in subsidies under the Continued Dumping and Subsidy Offset Act of 2000 (CDSOA). The CDSOA protected American shrimp producers by imposing anti-dumping taxes on foreign producers and permitting domestic shrimpers to apply for the money they would have made but for unfair foreign competition. Brian Anderson, an eligible domestic shrimper, completed and mailed multiple false certifications to CBP, stating that his shrimping business expenses for the years 2005 to 2007 were more than $24 million. Anderson claimed that he spent almost all of this money on the purchase of 3.9 million pounds of raw shrimp from R&R Seafood, a small seafood store on Tybee Island. However, the evidence showed that R&R Seafood never sold anywhere near that amount of shrimp in the entire time it was in business. Anderson’s bank records and tax returns further debunked his claimed expenses. Based on Anderson’s fraud, the U.S. government paid Anderson over $800,000 to which he was not entitled. Anderson used those proceeds of his fraud to purchase boats, stocks and property.
United States Attorney Bobby L. Christine stated, “Brian Anderson submitted millions of dollars in inflated invoices, for one simple reason: greed. The CDSOA was established to help protect our local American shrimpers from unfair foreign competition. Little did we know that the biggest threat to our honest shrimpers would come, not from across the seas, but from our own nearby creek. By overinflating the amount he was entitled to receive under the CDSOA, Brian Anderson diverted money from the pockets of hard working shrimpers into his own pocket. Our office is devoted to aggressively prosecuting anyone who seeks to steal public money by fraud.”
U.S. Attorney Christine commended the hard work and dedication of the United States Coast Guard Investigative Service, Homeland Security Investigations, and Customs and Border Protection, who jointly investigated the case.
Assistant United States Attorneys Jennifer Kirkland and Tania Groover prosecuted the case on behalf of the United States. For any questions, please contact the United States Attorney’s Office at (912) 652-4422.
Two Santa Rosa County Men Plead Guilty to Fraud Relating to Air Force Helicopter ContractsRead the Press Release
PENSACOLA, FLORIDA – Ryan Romero, 51, of Gulf Breeze, Florida, and Adam W. Fair, 42, of Navarre, Florida, pled guilty yesterday and Wednesday to conspiracy to commit wire fraud and honest services fraud. The guilty pleas were announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Evidence proffered as part of the plea showed the following: Between 2010 and 2012, “M.I.S.” and his company Simplex Corporation, were awarded contracts with the United States Air Force at Hurlburt Field Air Force Base to provide helicopters and parts. During the same period, defense contractors and subcontractors were awarded contracts with the Air Force to provide maintenance work on those helicopters. Romero was employed as maintenance manager and Fair was employed as a maintenance superintendent for one or more of these companies.
Fair and Romero used their positions to obtain kick-backs in exchange for giving favorable treatment to M.I.S. and Simplex Corporation. The favorable treatment included assisting M.I.S. in assembling and disassembling helicopters using defense contract company employees to complete the work without the company being compensated for this work. In exchange, Romero received approximately $30,000, and Fair received approximately $20,000.
The plea documents also reflect that in exchange for monthly payments of $6,000 from M.I.S., Romero and Fair agreed to provide favorable maintenance inspection reports to the Air Force on helicopters that M.I.S. and Simplex Corporation supplied. In exchange for agreeing to provide favorable reports, Romero and Fair received approximately $154,350 in kick-backs from M.I.S.
The defendants each face a maximum of 20 years in prison. The sentencing hearings are scheduled on July 18, 2018, for Fair, and on August 2, 2018, for Romero at the United States Courthouse in Pensacola.
The case was investigated by the United States Air Force Office of Special Investigations, and was prosecuted by Assistant United States Attorney J. Ryan Love.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.